14 Great Summer Reads

published 1 June 2009

Compiled by Tina Korbe

Sales of romance novels are up, a quirky indicator that the economy is down because the books provide depressed investors with a welcome diversion. But the following books, recommended by top editors of Kiplinger's Personal Finance, dish the real financial dirt. The original business novel, a bawdy comedy, wry advice and honest insight -- it's all here, on a summer reading list that's smart as well as satisfying.

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The author's first big hit, this 1989 book chronicles Lewis's time working as a bond salesman for Salomon Brothers. If Solly hadn't been acquired by Travelers Group (later to become Citigroup) in 1991 and had survived to reach this century, there's a good chance it would have met the same fate as Bear Stearns and Lehman Brothers. But this memoir is anything but bankrupt. Call it Wall Street meets Animal House -- it will leave you rolling on the floor.

There's nothing new about Bogle's financial advice. Vanguard's founder still touts simple, low-cost investments such as the index funds he created. But his observations hit home at a time when investors are trying to squeeze every penny out of their investments. Also timely: his criticism of the mutual fund industry for tipping the balance away from long-term stewardship and toward short-term salesmanship, "which has been detrimental to the interests of our shareholders."

Cleverly written and refreshingly readable, Nudge is an insider's guide to how our own psychological quirks and predispositions affect our decisions about "health, wealth, and happiness" -- and how we can leverage those quirks to influence public policy. Thaler is the nation's top authority on investor psychology, while Sunstein has been nominated to be President Obama's "regulation czar." Their combined expertise will make you a better investor.

Although this book was published in 1994, it remains a wonderful story of, as the rest of its title goes, "How the Middle Class Joined the Money Class" -- how and why we all became investors or at least indirect investors. You get the entertaining stories of how the money-market fund came to be, how IRAs and 401(k)s grew and developed, and more. It's the early history of personal finance. Think pro football in the days of leather helmets or basketball before the dunk.

This engaging history is not what you usually read about the Great Depression. Even the title is a surprising twist: The "forgotten man" is not the "man at the bottom of the economic pyramid." Instead, he is "the man who never is thought of: He works, he votes, generally he prays -- but he always pays." And the book's vignettes are fascinating -- such as an account of FDR, after eating breakfast in bed, setting the target price for gold by choosing a "lucky number."

From their first job to their retirement years, women face unique challenges when it comes to managing their money. Because women play so many different roles -- and sometimes leave the workforce to raise children and care for family members -- they need specific financial advice tailored to each stage of life. This book, by Kiplinger's editor Janet Bodnar, outlines what every woman needs to know to be financially independent, from breaking out of the paycheck-to-paycheck rut to living comfortably in retirement.

Written in narrative form, The Wealthy Barber is the story of three young adults who realize that they don't know squat about how to create a long-term financial plan for their future. Seeking help, they turn to a parent who points them to an unlikely expert: the local barber, who managed to turn a low-wage job into a comfortable lifestyle with millions of dollars in the bank. The secrets imparted are simple and easy to follow, and they illustrate that you don't have to have a six-figure salary to live the good life.

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